Friday, June 17, 2011

What Joe Should Have Told You

Reducing top tax rates in the US did not generate higher growth rates. It only caused a big revenue shortfall for the American Treasury which had to be financed with several hundreds of billions of dollars of debt. Along with a lot of inequality.

And that we've been quite ill-advised not to learn from Uncle Sam's mistakes.

13 comments:

So please, let's not forget that the flat tax idea is not just Rama's and Mansoor's doing - ramgoolam likes the idea even more as he boasted about this in Jan in Singapore.

And yeah, Ramgoolam didn't get rid of Rama because of the low tax etc ....the reason was merely a political one. Ramgoolam said he studied economics and Lord Desai was his teacher....maybe the low taz regime idea is from a textbook. poor man, or poor us mauritians

Well, we don't really have the low-tax regime anymore when you consider all the increases that happened after hitting a flat rate of 15% a few years ago. Besides CSR is another tax, albeit a disguised one. So the PM does not know what he is talking about.

I think Ramgoolam has been fooled. It is not easy to see through this flat tax thing: it sounds wonderful to cut taxes but the effects are lethal if you don't understand the repercussions. The problem is that he was set up: surrounded by carefully placed people who would not for one minute want to go against the toxic bean-counters.

Rama was dumped because the economic mess he created forced Ramgoolam to seek an alliance otherwise he would have been toasted. Don't forget that Ramgoolam undid the MSM-MMM alliance in 2005 winning by a comfortable 38-22 margin but that was withered away by Ali-Rama toxic policies. If things were so rosy he should have kept Rama and gone alone into the elections, don't you think?